CapitaLand Ascott Trust bags $165m OCBC sustainability-linked loan
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Ms Serena Teo, CEO of CapitaLand Ascott Trust's managers, said the OCBC loan brings the stapled group’s sustainable financing to over $700 million.
PHOTO: BT FILE
Michelle Zhu
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SINGAPORE – CapitaLand Ascott Trust (Clas) has secured a $165 million sustainability-linked, multi-currency revolving credit facility from OCBC Bank.
Proceeds from the loan will be utilised by Clas for general corporate purposes.
Dubbed the OCBC 1.5°C Loan, the financing solution was launched in 2023 and grants Clas interest rate reductions upon meeting agreed annual greenhouse gas emissions targets validated by the Science Based Targets initiative.
Clas is the first lodging trust to secure such a loan from OCBC.
The stapled group is said to have “greened” – or made more environmentally sustainable – 51 per cent of its global portfolio by gross floor area as at May.
This exceeds the target of greening 50 per cent of the portfolio by 2025 and puts Clas on track to achieve 100 per cent by 2030, noted the stapled group and OCBC in a joint statement on Aug 6.
Ms Serena Teo, chief executive of Clas’ managers, said the latest facility from OCBC brings the stapled group’s sustainable financing to more than $700 million to date.
OCBC and Clas also noted an “increasing interest” in the OCBC 1.5°C Loan.
They believe this reflects a “heightened momentum in the global net-zero movement, as well as (OCBC’s) active engagement with clients on their decarbonisation ambitions”. THE BUSINESS TIMES
